Akasa Air buys 300 CFM engines at list prices of $5 billion: Report

The contract for Leap-1B engines, spares, and services is estimated to be worth $5 billion at list prices, said the report

Akasa Air, India's youngest low-fare carrier, has purchased over 300 engines from CFM International to power the 150 aircraft it purchased from American plane manufacturer Boeing earlier this month, according to a report by The Economic Times (ET).

The contract for Leap-1B engines, spares, and services is estimated to be worth $5 billion at list prices. Airlines typically negotiate volume discounts for planes and engines, it said.

Akasa's 189-seater Boeing 737-8 Max planes are powered exclusively by CFM Leap engines. The airline currently operates 22 aircraft.

Its latest order is for the 194-204-seater Boeing 737 Max 8-200 and Boeing Max 10 aircraft.

Franco-American engine maker CFM currently has 2,500 engines in India, which power 400 aircraft. It is a 50/50 joint venture between France’s Safran Aircraft Engines and the US's GE Aerospace.

Akasa Air's 150 Boeing 737 Max planes order

On January 18, Akasa Air announced that it plans to acquire 150 Boeing 737 MAX narrowbody planes.

The move is aimed at expanding the airline's reach in both domestic and international operations, strategically positioning itself in the thriving aviation market of India, it said.

The latest order, comprising of 737 MAX 10 and 737 MAX 8-200 jets, will provide the airline a steady stream of aircraft deliveries through 2032.

“This large and historic aircraft order puts Akasa on a path of becoming one of the top 30 leading airlines in the world, by the turn of this decade. These additions to our fleet will help us bolster the strength of our operations as we expand our footprint and foray into international skies in the very near future," said Vinay Dube, founder and chief executive, Akasa Air.